Is Linc Energy a Life Time Opportunity?

No every body finds a 20 trillion oil discovery. Further more, who dares to announce a discovery to the eager investors ready to jump in anything that could triple in price. Well Linc Energy have just done that.

The company has announce on the ASX exchange that independent reports confirm significant potential for shale oil in the Arckaringa basin. The report was produced by DeGolyer and MacNaughton one of the most respected names in the upstream segment of the oil and gas industry, providing reserves consulting services, resources evaluations, field studies, reservoir simulation studies, and many other services for energy and financial services companies worldwide.

So even the if the speculation factor behind this announcement is huge, investor can trust that at least something will come out of it. The company itself, as the share price demonstrates, has a history of been a bit volatile. So there isn’t any surprise that it could just be another of those spike, where, the first investors to know make the quick big dollars, and the rest end up holding a penny company.

Another factor that outside investors can look forward to, is that the company (Linc Energy) has also announced that, it has appointed Barclay’s Capital to help it find a partner with experience in shale drilling. The company expects to announce a partner in the next six months. This is some exciting news that could propel the price further up.

If the share price manage to stay at this heights, the closer the company gets to the oil, the higher the share price could go. One interesting thing to look at, will be to compare the two charts bellow. One is Linc Energy share price and the other is Linc Energy search trend from Google. Google trend chart doesn’t really prove anything that the company share price doesn’t tell. At the same time, it is interesting to see how that search translates into higher share price.

Linc Energy could be one of those opportunities that you wait for. Whether translate into profits is a different story, but at least a chance to think if this a real opportunity or just another market scam. Investors have seem many of this happening before. Lynas, the rare earth metal company, is a very good example.